White Pearl Technology Group AB (publ) ("WPTG" or the "Company") today announces that it has signed a non-binding Letter of Intent (LOI) to acquire 100% of the shares in the Swedish-based cash flow positive company, Profit Solutions Sweden AB ("Solutions Sweden"). The total purchase consideration for the proposed transaction amounts to SEK 9 million and is intended to be settled in WPTG shares in two tranches, with part of the consideration conditional upon Solutions Sweden achieving the agreed financial performance following completion. The proposed acquisition is expected to have clear synergies with WPTG and its digital marketing areas.
LOI - Purchase Price
The indicative purchase price amounts to SEK 9 million. Upon execution of the final share purchase agreement, WPTG intends to issue Series B shares amounting to SEK 4.5 million. These shares will be subject to a 9-month lock-up period. The share price is intended to be based on the 15-day volume-weighted average price (VWAP) on the day of signing of the final agreement.
A further consideration of SEK 4.5 million is intended to be paid 12 months post-acquisition in WPTG shares, conditional upon Solutions Sweden achieving EBITDA of SEK 1.5 million. These shares will be subject to a 6-month lock-up period.
If the EBITDA target is not achieved, the additional purchase consideration is intended to be adjusted on a pro rata basis. In the event of overachievement, the purchase price may be increased proportionally up to 120% of target, in accordance with the final agreed terms.
About Profit Solutions Sweden and Strategic Rationale
Profit Solutions Sweden is a Sweden-based digital marketing agency specializing in performance marketing services, including SEO, SEM, paid social, and web development. The company is cash flow positive and generates annual revenues of approximately SEK 13.5 million.
The acquisition of Solutions Sweden represents a scalable and cash-generative opportunity for WPTG within its digital marketing and customer acquisition offering. Adding Solutions Sweden to the WPTG is expected to create several synergy opportunities, including cross-selling of marketing services, as well as upselling WPTG's broader technology and digital transformation services to Solutions Sweden's customers.
For more information, please contact:
info@whitepearltech.com
The company's Certified Adviser is Amudova AB, email: info@amudova.se.
About White Pearl Technology Group:
White Pearl Technology Group AB (WPTG) is a Swedish global technology company specialising in digital transformation solutions. With a presence in over 20 countries and a team of 950 experts, WPTG helps organisations navigate the complexities of the digital age, offering services ranging from ICT and system integration to business software and digital innovation. The company is listed on Nasdaq First North (WPTGB) in Stockholm, Sweden and on OTCQX (WPTGF) in the U.S.
